Document 93EagBboRG2dRybqJz74Zzv7V

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 1445 ROSS AVENUE, SUITE 1200 DALLAS, TX 75202-2733 0 8 AUG 2018 , CERTIFIED MAIL - RETURN RECEIPT REQUESTED: '!to 7JtJJ..bN't)D/5":22f~ 'f1 Ms. Sara Holt Environmental, Health and Safety Manager Trecora Chemical 12500 Bay Area Blvd. Pasadena, Texas 77507 Re: Consent Agreement and Final Order In the Matter ofTrecora Chemical Docket No. CAA-06-2018-3330 Dear Ms. Holt: Enclosed is a fully executed Consent Agreement and Final Order (CAPO) in the matter referenced above for Trecora Chemical. As provided in the CAFO, Trecora Chemical will have thitty (30) days from the effective date of the CAFO to pay the civil penalty of $31,640.00 If you have any questions regarding this CAFO, please contact Ms. Courtney Carter, Assistant Regional Counsel, at (214) 665-8175. Sincerely, Cheryl T. Seager Director Compliance Assurance and Enforcement Division Enclosure Ecc: Michael De La Cruz, Manager Air Enforcement Section Enforcement Division, Office of Compliance & Enforcement Texas Commission on Environmental Quality michael.delacmz@tceq. texas.gov Internet Address (URL) http://www.epa.gov Recycled/Recyclable Printed wHh Vegetable 011 Based Inks on Recycled Paper (Minimum 25% Postconsumer) UNITED STATES F I L ED ENVIRONMENTAL PROTECTION AGENQfi 6 ~,UG _r, REGION6 u DALLAS, TEXAS l. t( IC 1 , l rL: [ r :, r?E. (Jiv" VI IN THE MATTER OF: TRECORA CHEMICAL, INC. PASADENA, TEXAS RESPONDENT EPA DOCKET NO. CAA-06-2018-3330 CONSENT AGREEMENT . AND FINAL ORDER CONSENT AGREEMENT The Director of the Compliance Assurance and Enforcement Division of the United States Environmental Protection Agency ("EPA"), Region 6 ("Complainant") and Trecora Chemical, Inc. (" Respondent") in the above-referenced proceeding, hereby agree to resolve this matter through the issuance of this Consent Agreement and Final Order ("CAFO"). I. PRELIMINARY STATEMENT 1. This proceeding for the assessment of civil penalties is brought by EPA pursuant to Sections 113(a)(3)(A) and 113(d)(l)(B) of the Clean Air Act (CAA), 42 U.S.C. 7413(a)(3) and 7413(d)(l)(B), and is simultaneously commenced and concluded through the issuance ofthis CAFO pursuant to 40 C.F.R. 22.13(b), 22.18(b)(2) and (3), and 22.34. 2. This CAFO serves as notice pursuant to Section 113(d)(2)(A) ofthe CAA, 42 U.S.C. 7413(d)(2)(A), and 40 C.F.R. 22.34. 3. For purposes of this proceeding, Respondent admits the jurisdictional allegations contained herein; however, Respondent neither admits nor denies the specific factual allegations contained in this CAFO. Trecora Chemical, Inc. Docket No. CAA-06-2018-3330 4. Respondent explicitly waives any right to contest the allegations and its right to appeal the proposed Final Order set forth herein, and waives all defenses, which have been raised or could have been raised to the claims alleged in this CAFO. 5. Compliance with all the terms and conditions of this CAFO shall only resolve Respondent's liability for federal civil penalties for those violations which are alleged herein. 6. Respondent consents to the following: issuance of the CAFO hereinafter recited; and the assessment and payment of the stated civil penalty in the amount, and by the method set forth in this CAFO. IL STATUTORY AND REGULATORY BACKGROUND 7. Section 112(r)(l) ofthe CAA, 42 U.S.C. 7412(r)(l), provides that the objective of the regulations and programs authorized under Section 112(r) shall be to prevent the accidental release of regulated substances or other extremely hazardous substances and to minimize the consequences of any such release that does occur. 8. Pursuant to Section 112(r)(l) of the CAA, 42 U.S.C. 7412(r)(l), an owner/operator of a stationary source producing, processing, handling or storing substances listed pursuant to Section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3), or any other extremely hazardous substance, has a general duty to: (I) identify hazards which may result from accidental releases of such substances using appropriate hazard assessment techniques; (2) design and maintain a safe facility, taking such steps as are necessary to prevent releases; and (3) minimize the consequences of accidental releases that do occur. 9. Under Sections ll3(a)(3) and 113(d)(l)(B) of the CAA, 42 U.S.C. 7413(a)(3) and 7413(d)(l)(B), whenever the Administrator finds that any person has violated or is violating a requirement of the CAA including, but not limited to, a requirement or prohibition of any rule 2 Trecora Chemical, Inc. Docket No. CAA-06-2018-3330 promulgated under the CAA, the Administrator may issue an order assessing a civil administrative penalty. I 0. As adjusted by the 2017 Civil Monetary Penalty Inflation Adjustment Rule (2017 Rule) (82 Fed. Reg. 3633), 40 C.P.R. 19.4, the Administrator may assess a civil penalty of up to $45,268.00 per day of violation for a violation occmTing after November 2, 2015 and assessed on or after January 15,2017. 11. Section 302(e) of the CAA, 42 U.S.C. 7602(e), defines person as an "individual, corporation, partnership, association [ ... ] and any officer, agent, or employee thereof." 12. "Owner or operator" shall mean any person who owns, leases, operates, controls, or supervises a stationary source. 13. Section 112(r)(2)(C) of the CAA, 42 U.S.C. 7412(r)(2)(C), defines "stationary source" as: any buildings, stmctures, equipment, installations or substance emitting stationmy activities (i) which belong to the same industrial group, (ii) which are located on one or more contiguous properties, (iii) which are under the control of the same person (or persons under common control), and (iv) from which an accidental release may occur. 14. Section 112(r)(2)(A) of the CAA, 42 U.S.C. 7412(r)(2)(A), defines "accidental release" as "an unanticipated emission of a regulated substance or other extremely hazardous substance into the ambient air from a stationary source." 15. "Regulated substance" is defined in 40 C.P.R. 68.3 as any substance listed pursuant to Section 112(r)(3) of the CAA as amended, in 68.130. III. FINDINGS OF FACTS AND CONCLUSIONS OF LAW 16. Respondent is incorporated and registered to transact business in the State of Texas. 17. Respondent is a "person" as that term is defined by Section 302(e) of the CAA, 3 Trecora Chemical, Inc. Docket No. CAA-06-2018-3330 42 U.S.C. 7602(e). 18. Respondent owns and operates the Trecora Chemical facility located at 12500 Bay Area Boulevard, Pasadena, Texas, 77507. 19. Respondent's facility processes waxes and is involved in tolling operations, NAICS Code 325199- chemical product manufacturing. 20. The facility is a "stationary source" as that term is defined by Section 112(r)(2)(C) of the CAA, 42 U.S.C. 7412(r)(2)(C). 21. Respondent is the "owner or operator" as those terms are defined by Section 112(a)(9) of the CAA, 42 U.S.C. 7412(a)(9), of a stationary source. 22. The facility uses xylene as a cleaning agent to clean the reactors. Xylene is an extremely hazardous flammable substance, and is stored at the facility 23. On August 14, 2017, at 11 :24am, an operator was cleaning the RX-2 reactor with xylene between tolling processes. The operator overfilled the reactor with xylene, leaving the reactor without a vapor space. The pressure increased causing the mpture disk to fail and release 4500 pounds of xylene into the atmosphere. 24. The primary root cause for the reactor upset was that the reactor was charged with an excess of xylene, leaving insufficient vapor space in the reactor. 25. In addition, the reactor pressure transmitter for the reactor was set at an insufficient scan rate. As a result, the process control computer did not read any increase in pressure, failed to control the nitrogen pad pressure, and did not alarm the control room operator that an increase . . m pressure was occurrmg. 26. Respondent calculated a total release of 4,500 pounds of mixed xylenes, including 1,616 pounds ofp-Xylene, 1,803 pounds ofm-Xylene, and 1,081 pounds of o-Xylene. 4 Trecora Chemical, Inc. Docket No. CAA-06-20 18-3330 27. Pursuant to Section 112(r)(1) of the CAA, 42 U.S.C. 7412(r)(1), an owner/operator of a stationary source producing, processing, handling or storing substances listed pursuant to Section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3), or any other extremely hazardous substance, has a general duty to: (I) identify hazards which may result from accidental releases of such substances using appropriate hazard assessment techniques; (2) design and maintain a safe facility, taking such steps as are necessary to prevent releases; and (3) minimize the consequences of accidental releases that do occur. 28. Complainant alleges that the release at the facility on August 14,2017, ("the August 14, 2017, Release") constituted an "accidental release" as that term is defined by Section 112(r)(2)(A) of the CAA, 42 U.S.C. 7412(r)(2)(A). 29. Complainant alleges that, when Respondent overfilled the reactor with xylene on August 14,2017, leading to the accidental release of xylene into the air, Respondent failed to maintain a safe facility, constituting a violation of the general duty clause in Section 112(r)(1) of the CAA, 42 U.S.C. 7412(r)(1). 30. In addition, Complainant alleges that Respondent's failure to set the reactor pressure transmitter for the RX-2 reactor at a sufficient scan rate, leading to a failure to control the nitrogen pad pressure and a failure to indicate to the control room operator that pressure was increasing, was a failure to maintain a safe facility, constituting a violation of the general duty clause in Section 112(r)(1) ofthe CAA, 42 U.S.C. 7412(r)(1). 31. Complainant alleges that Respondent is therefore subject to the assessment of penalties pursuant to Sections 113(a)(3) and 113(d)(l)(B) of the CAA, 42 U.S.C. 7413(a)(3) and 7413(d)(! )(B), for at least one day of violation of the general duty clause of Section 112(r)(1) of the CAA, 42 U.S.C. 7412(r)(l). 5